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Medi-Lynx, AMI, Spectocor, and Bogdan — $13.4 Million

Three Independent Diagnostic Testing Facilities (IDTF) providing remote cardiac monitoring services, and one of their owners, agreed to pay more than $13.4 million to the United States to resolve allegations they submitted, and caused the submission of, false claims to Medicare for medically unnecessary and unreasonable cardiac monitoring services.

Our client, Eben Steele, a former employee of AMI/Spectocor, alleged that defendants Medi-Lynx, AMI, Spectocor, and Joseph H. Bogdan designed and used an online enrollment portal to steer physician customers who used the defendants’ PocketECG device to select the most expensive cardiac monitoring service, telemetry, for their Medicare patients even though the physicians intended to select less expensive monitoring services, such as Holter or event monitoring. Through this scheme, defendants submitted, and caused the submission of, false claims to Medicare for unnecessary and unreasonable telemetry services.

Under the terms of the settlement, the IDTFs and Bogdan agreed to pay more than $13.4 million to resolve these allegations. This was a rare instance where an individual (as opposed to a company) was held accountable in an FCA corporate case, a fact noted by the Department of Justice in its year end 2017 press release on False Claims Act recoveries.

United States ex rel. John Doe v. Medi-Lynx and Spectocor, et al., Docket No. 14-CV-1387 (D. N.J.)

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